UPDATE  01/27/07

STOCKS:

The DJIA broke below the uptrend from late November on Friday, but then managed to close above the trendline. Further weakness this week should confirm a correction is unfolding. Support for the DJIA is around the 12,350 level and then 12,100. If a correction is unfolding, it should last into the next cycle low due in March. The NADAQ Comp rallied back up to resistance at 2475 before selling off again. Support is at 2400. A close below that area wouldn't be a good sign for the market.

GOLD:

April gold rallied up to resistance above $ 660 and pulled back. It did manage to break above the downtrend on the weekly chart which is a positive. There should be one more advance to the $ 675 to $ 685 level over the next two weeks. Support continues just above $ 600.

T BONDS:

March bonds broke support at the 100 level and continue their pullback from the December high. The MACD on the daily chart still hasn’t turned up despite it’s over sold condition. This market needs to regain the 110 level and then 111 to turn things bullish again.

Regards and Good Luck

Jay Sanderson
TimingStock.com
 

To see Jay's past Market Commentary and other products please click here www.reliablestockcycles.com

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Commentary Archives

Long term cycle is bullish - 1/06/07